Apache to expand Egypt investments by $1 billion in 2013

2/20/2012

Apache to expand Egypt investments by $1 billion in 2013

BY BRINDA DARASHA

DUBAI--U.S. oil and gas producer Apache Corp. has reached a deal with Egypt to expand its oil and gas investments in the North African country in 2013 by $1 billion, Egypt's Minister of Oil Abdullah Ghorab said, according to the Kuwait state news agency, or Kuna.

In a joint press conference with Apache Chairman and Chief Executive Officer G. Steven Farris, Ghorab said Sunday that Apache officials have presented to Prime Minister Kamal Al-Ganzouri a plan to pump $1 billion into oil and gas exploration and production projects in Egypt in 2013, Kuna reported.

The minister said the American company has several projects in Egypt's western desert, and is one of the biggest energy companies operating in Egypt, Kuna said.

The U.S. oil and gas company has operations in the United States, Canada, Egypt, the U.K.'s North Sea, Australia and Argentina.

Apache has spent over $1 billion on oil and gas exploration in Egypt over the past decade, Farris said, adding the Egypt government's revenues from Apache projects amounted to $10 million per day.

The Houston-based company had earlier in the month said it remained bullish on its operations in Egypt and the U.S. Gulf of Mexico, where it also plans to increase spending this year, despite concerns the company has too much exposure to both areas, which saw significant regulatory changes last year.